Broker Ratings & Price Targets

Strong Buy: This recommendation constitutes one of the broker’s best picks, with the stock expected to significantly outperform the market – typically by at least 20%.
Buy: Another fairly strong conviction that the shares are inexpensive relative to its expected future performance. Appreciation of more than 10% is typically expected.
Speculative Buy: This recommendation is characterised by high levels of risk but also the possibility of high levels of return providing certain business goals come to fruition.
Outperform: Outperform indicates that the broker believes the company will perform better than its peers in the same sector or in relation to a given benchmark index.
Top Pick: Stocks with this recommendation represent the best outperform rated companies in the outperform category. Expectations are high that the company will significantly outperform its sector.
Sector Performer: Returns are expected to be in line with the sector average.
Moderate Buy: This is a fairly descriptive term, suggesting a certain amount of caution should be applied if deciding to buy the shares.
Accumulate: Another descriptive term, this suggests that the shares should be added to within certain parameters. For instance, it might be that the stock is only worth buying under a certain price point.
Overweight: This is an interesting term that avers that the weight of the shares in question should be greater than the weight of the shares in a given index or coverage universe used for comparison. To depict this, say, for example, Barclays represented 5% of the FTSE 100 but constituted 7% of your portfolio, then you would be overweight in Barclays’ shares.
Add: Similar to moderate buy in the sense that caution should be taken if adding to a particular holding.
Hold: Pretty self-explanatory – the investor should refrain from taking action in the near-term and wait for further developments to take place.
Neutral: This recommendation generally means that the broker anticipates that the stock will perform at or near the current share price and generally in-line with the market.
In-line: Similar to neutral, the analyst expects the stock to perform approximately in-line with the market or the coverage universe used for comparison.
Equal-weight: This is based on the same logic used for overweight, meaning that the investor should hold the shares in proportion to its weight in the index.
Underperform: A recommendation of underperform would indicate that the broker believes the stock is fully-valued or overvalued at current levels, and it is projected to perform worse compared to the market or coverage universe used for analysis.
Moderate Sell: Another descriptive term that suggests that the broker views the company’s current share price as high relative to its peers or financial forecasts.
Weak Hold: A recommendation of weak hold would indicate that the broker is waiting on further developments but possibly changing their view on the company from a hold to a sell position.
Underweight: Again, this is based on the same logic used for overweight, meaning that the investor’s holdings in the company in relation to its full portfolio should consist of a percentage below the percentage proportion that the company constitutes in terms of its overall index.
Reduce: The shares of the company with this recommendation have more downside risk than upside, and therefore investors should reduce their position until its valuation or fundamentals become more compelling.
Sell: As you would expect, this recommendation constitutes a warning that the stock is currently overvalued and that investors should expect a depreciation in share price – typically in the region of 20%.
Strong Sell: As the strongest warning, a strong sell recommendation would be a clear indicator that the broker believes the fundamentals of the company and/or industry to be precarious and highly likely to deteriorate in the near-future.
Corporate: A corporate rating is issued when the company is a corporate client of the brokers.